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GBP closing in on 1-month highs

Sterling defends its recent gains..


The UK delivered 'tight' labour data for January this morning, allowing for another interest rate hike from the BoE this month. The unemployment rate remains unchanged at 3.7%, beating expectations for 3.8%. The number of jobs are up, average earnings are up and the figures are good news for the UK & £.

GBP v EUR & GBP v USD are both trading at the second best time since the end of January, so a 'good' time to exchange. However, the Spring Budget tomorrow could/should be beneficial to £ sellers. Markets are being cautious with what may be delivered, but we expect to see a positive outcome from Chancellor Hunt, who has brought much needed stability to the £ since being in the position. 

The fallout from both lender banks in the US is still ongoing with the $ remaining under pressure. President Biden's speech yesterday was a convincing one, but it has done little to settle investors in what the Fed may do at the next meeting for that all-important interest rate decision. The collapse of the banks is being tipped as a micro-story and not a macro-story, however, what happened in 2008 is obviously still fresh in people's minds (and rightly so).